Consumer Behavior Assesment of a Local Company (Mr Bean)

1. The Company

1.1 Product Review

2. Target Market Profile

2.1 Target Market Characteristics

3. Target Market Decision Making Process [DMP]

3.1 Input (External Influences)

3.2 Input (Social Influences)

3.3 Process (The Consumer Decision Making Process)

- Problem Recognition

- Information Search

- Evaluation and Selection

3.4 Output (Post Purchase Behaviour)

- Decision Implementation

- Post Purchase Evaluation

4. Personal, Social and psychological Influences

4.1 Personal

4.2 Perception

4.3 Motivation

5. Conclusion

6. Bibliography

TABLE OF CONTENTS

1. The Company

Mr Bean is the leading chain of Soya Bean food and beverage retailer in Singapore. The Company

was founded in 1995, by Mr Kang Puay Seng and Loh Jwee Poh. The first Mr Bean stall was

located at People’s Park Hawker Centre.

The company which adopts a fast food concept utilizes years of experience complimented with the

latest technologies to produce fresh and delectable products with nutritious value. (Mr Bean, 2009)

As of 2011 the company boasts a total of 62 retail stores (60 islandwide in Singapore. And 2

stores in Japan)

Mr Bean has also won awards such as;

Singapore Promising Brand Award

Most Popular Brand Award

My Favourite Consumer Brand Award

1.1 Product Review

Mr Bean products are mainly non-durable consumer products. They are convenience products that are

bought frequently with little planning. The main benefit that consumers get from Mr Bean products is its

health benefits. Several scientific studies have shown that soya beans are able to improve bone

health, reduce risk for heart diseases, prevent certain cancers, as well as lower bad cholesterol

levels (Soya.be 2010). Mr Bean products are made with the finest ingredients and highest grade of

non-genetically modified soya beans (Mr Bean 2009).

Mr Bean’s product line consists of soya milk, Beancurd, grass jelly, healthy snacks, and their very own

exclusive Mr Bean merchandise (Mr Bean 2009). Each product line comes in many different flavours,

and snacks range from ice cream to pancakes. There is very high product line consistency in Mr Bean

products as they are mainly for consumption and they use the same distribution channels.

INTRODUCTION

2. Target Market Profile

Market Segmentation is the process of splitting customers or potential customers into different

groups or segments, this method is used by organisations as a marketing tool to gain competitive

advantage over their competitors as consumers differ in many ways such as their needs and

wants, buying attitudes and practices, and buying channels. (Cahill 1997).

There are four types of market segmentation Geographic Segmentation, Demographic,

Psychographic and Behavioural segmentation. (McColl-Kennedy & iel, 2000)

Soy products play a large part in the Asian food culture; furthermore it is not a product that is race

specific and can be used by all races including Chinese, Malays, Indians, and Eurasians. Utilizing

Demographic and Behavioural segmentation, a target market profile can be created.

2.1 Target Market Characteristics

Mr Bean’s primary target market would be males and females from the Generation X to Y falling

within the ages of 15 to 45 years old.

The target market would be anybody living or working in Singapore.

They are students or working executives with income levels ranging from $400 onwards

They are also more health conscious and puts more emphasis on healthy lifestyles

Due to the fast paced nature of Singapore’s culture, quick service, convenience and accessibility is

also important to them

Although Soya bean milk and like products are part of Singapore’s heritage and culture and is

utilized by consumers from all social classes, due to the delivery channels the target market will

mainly be from the working and middle class.

As Mr Bean’s items are fairly low priced a large disposable income is unnecessary. Mr Bean’s

products offers healthier choices in a fast food concept at more than 50 outlets islandwide (Mr

Bean 2009), enabling the target market to have healthy choices while on the go.

3. Target Market Decision Making Process [DMP]

To identify what are the consumer’s DMP a survey was carried out and its findings will show what

perception does consumers have of Mr Bean. Many Consumers’ position on Mr Bean and its

products are that it is a “convenient and healthy snack/drink” to purchase when in a hurry.

Mr Bean’s product positioning should concentrate being a brand which provides healthy and good

quality products as efficiently and economically as possible. And can do so by utilizing one of the

main components of the consumer decision making process “input”.

External Influences

Consumer Decision Making Process

Post purchase behavior

Decision Implementation

Post Purchase Evaluation

Problem Recognition

Information Search

Evaluation and Selection of Alternatives

PROCESS

OUTPUT

INPUT

Firm’s Marketing Efforts

Socio-cultural Environment

3.1 Input (External Influences)

Input uses external influences as a source of information about a product, there are two types of

sources, a formal or an informal communication source. A Formal communication source is

impersonal and its influence is delivered from a marketing agent through the use of advertising,

sales promotions, publicity or salespeople. (Leon G. Schiffman et.al,2010, p 281-282)

Mr Bean can utilize this form of influences by putting up advertisments to promote brand

awareness. From the results in the survey conducted, a large majority of consumers purchase Mr

Bean’s products from high traffic areas like MRT stations and Bus interchanges. Poster ads placed

at these locations would be the optimal location.

3.2 Input (Social Influences)

An informal communication source is interpersonal and its ifluences are delivered from an entity

outside a marketing organization.

This is called Social influences made up by Non-marketer-dominated sources and these sources

are important in influencing consumer’s thought processes through the use of “word-of-mouth

communication utilizing reference groups like friends, family, neighbours, television coverage,

internet sites and branded entertainment.” (Leon G. Schiffman et.al,2010, p 281)

Mr Bean can make use of this by influencing culture by using product placement or branded

entertainment. Celebrities who belong to the “Aspirational Reference Group” can be a strong form

of influence as consumers admire and desire to be like them. And by associating a celebrity with

their products Mr Bean can influence consumer’s decision making process.

3.3 Process (Consumer Decision Making Process)

The process portion of the consumer DMP focuses on the thought process consumers go through

when purchasing a product. This thought process can be said to follow three stages,

problem/need recognition, information or pre-purchase search and lastly evaluation of alternatives

and selection. (Schiffman & Kanuk, 2007)

Problem recognition

Problem recognition begins when the consumer identifies a need, it may be a physiological or

psychological need. In the case of Mr Bean’s consumers it is a physiological need, mainly

“hunger” or “thirst”.

Once the consumer identifies this need, there will be motivation to fulfil by creating a “want”. (“I

want a Soybean drink to quench my thirst” or “I want a Mr Bean pancake snack to satisfy my

hunger”. These wants that the consumer has is now a goal and to that will lead the consumer to

the second stage of the DMP (Information Search). (Schiffman & Kanuk, 2007)

Information Search

At this stage the consumer would be active in an external search whereby he goes on to

extensively search for a favourable product soon after the consumer would have derived an

awareness set of brands.

According to the survey many of Mr Bean’s customers travels using public transport and will be

searching for information on where they can fulfil their needs, by having adequate stimuli like

advertisements placed at these locations, marketers can lead consumers to “want” Mr Bean’s

products.

Evaluation and Selection

At this stage the consumer will break down his evoke set and evaluate his choices. In the survey

conducted two of the most important criteria’s in buying Mr Bean’s product are that it is readily

available and convenient to purchase.

Other criteria identified in the survey that influenced consumers to buy Mr Bean’s products;

Mr Bean’s has healthier choice products and has health benefits

Mr Bean has a wide variety of products to choose from

Prices are more reasonable when compared to competitors

Therefore it is at this point where consumers evaluate their choices, “what other drinks can i buy”

and if the competitors do not fulfil the consumers criteria, they will then ultimately choose Mr Bean

which takes them to the last component in the DMP.

3.4 Output (Post purchase behaviour)

Output is the result of the process stage. The output stage starts after the consumer decides

which products to buy. Two main things occur during this process, first the consumer buys the

product, and next the consumer looks critically at the product and decides if the right choice was

made. (K Gerber, 2008)

Decision Implementation

At this point the consumer will go out to purchase the product at the outlet. The decision of

which store or outlet will depend on certain factors such as convenience and availability. Other

factors such as if this is a “trail purchase” or if the consumer is a “repeat customer” will affect

the decision to buy the product. As Mr Bean utilizes a fast food concept serving time is very

fast, which suits the needs of the target consumers. After the purchase has been made we will

reach the last and final stage of the DMP process.

Post Purchase Evaluation

After purchasing a product a consumer may ask themselves “was the choice right for me?” or

“is that product really as good as I thought it was?” “Did I spend too much money?”

If the answers to these questions are unsatisfactory then the occasion of a repeat purchase

will be highly unlikely. On the other hand if the answers were favourable, Mr Bean will gain

loyal and repeat customers.

In the survey conducted many consumers already had a preconception as to what Mr Bean’s

products should be like and agreed that they would recommend Mr Bean to their friends.

Mr Bean having a fast food concept provides consumers with a certain level of trust that the

products they serve will have consistency. This enables consumers to have faith that the

quality of the products will not vary at different outlets. Many consumers indicated in the

survey that taste is not as important as price and convenience and consistency.

4. Personal, Social and Psychological Factors

4.1 Personality

The Personality of Mr Bean’s consumers have some similarities. Some consumers are

triggered by peer influence while others may be motivated physically to satisfy a basic need

such as thirst or hunger. According to Schiffman, Kanuk and Wisenblit (2010) the Freudian

theory suggest there are three interacting systems and as hunger and thirst is a basic need, it

triggers our “id” side which is our impulse and primitive drives

4.2 Perception

Mr Bean can influence consumer’s perception of their brand by using concepts such as

product positioning and advertising. This perception can be further influenced by consumer’s

own expectations or experiences.

.

Mr Bean can achieve a high level of product awareness this by using stimuli, to influence the

consumer’s perception. The packaging, physical attributes, advertisements and commercials

are some avenues Mr Bean can explore.

Because social influence plays a large role in influencing consumer behaviour, Mr Bean can

use product placement to change consumer’s perception of their products.

4.3 Motivation

Motivation is a strong psychological influence on consumers as it drives them to action to

relieve tension created by an unfulfilled need. According to Maslow’s hierarchy of needs,

humans will satisfy their most basic or primitive needs before that of anything else.

(Schiffman & Kanuk, 2007)

Mr Bean offers consumers a means to fulfil those needs with their products, and that

message should be clearly indicated on their advertisement avenues.

5. Conclusion

Understanding the decision making process of consumers and the way they think is

paramount in generating sales and retaining customers. A good way of understanding

consumer’s perceptions of your brand is to conduct a survey. It allows for customers to

voice out their opinions and it makes them feel that they are important.

In understanding the consumer’s purchasing behaviour, Mr Bean will be better suited to

produce a stimulus that has a larger influence on consumer’s perception.

6. Bibliography

K Gerber, N. B. (2008). Consumer Behaviour. Cape Town: Pearson Education South Africa .

McColl-Kennedy, J., & iel, G. C. (2000). Marketing A Strategic Approach. South Melbourne: Nelson

Thomson Learning.

Schiffman, L. G., & Kanuk, L. L. (2007). Consumer Behavior. United States of America: Pearson.

Schiff man, L.G., Kanuk,L.L. and Wisenblit,L. (2010), Consumer Behaviour, 10th Ed, Upper Saddle

River, New Jersey: Prentice Hall

Mr Bean (2009). Retrieved November 14, 2012, from .mrbean.com.sg/aboutus.aspx:

http://www.mrbean.com.sg

Gary Armstrong, P. K. (2011). Marketing an Introduction. Pearson Education.

R.Foxall, G. (1981). Strategic Marketing Management. London: Croom Helm Ltd.

University, D. (2011, Febuary). betterhealth. Retrieved september 18, 2012, from Better Health

Channel: http://www.betterhealth.vic.gov.au/bhcv2/bhcarticles.nsf/pages/Soybeans